Syngas shares soar on China CTL deal

Syngas said it had inked a deal with a Chinese firm to develop the Clinton coal-to-liquid project in South Australia.

Syngas shares were up 3¢, or 214.29 per cent, at 4.4¢ at 1.14 AEDT after more than 196 million shares in the Adelaide-based company had changed hands, making it the second most traded stock by volume.

The shares had earlier peaked at 5.5¢.

Syngas said it had signed a memorandum of understanding with China National Electric Equipment Corporation (CNEEC) to work together on the Clinton project, about 120km northwest of Adelaide.

"Syngas will seek to develop and extend this strategic relationship with CNEEC to encompass in the future additional projects in Australia, in China and elsewhere around the world," Syngas said in a statement.

"Syngas is also in discussions with a number of private equity funds/potential investors who are interested in working with the company in the shorter term."

Syngas
is also studying the viability of a non-food biomass-fed diesel production facility in SA.